Fraud Risk Expected to Rise


Senior executives expect fraud to pose a significant challenge over the next 12 months, according to KPMG Forensic’s recently released Fraud Survey 2009. Nearly one-third (32%) of the senior executives surveyed said they expect some form of fraud or misconduct to increase in their organizations. A majority (65%) said that fraud and misconduct poses a significant risk to their industry today.

 

What is their greatest concern if such wrongdoing is experienced? More than 70% were concerned with the potential loss of public trust at a time when market confidence is at a premium.

 

Also, 66% of the executives reported that inadequate internal controls or compliance programs at their organizations enable fraud and misconduct to go unchecked, and they identified the following areas in need of the most improvements in antifraud efforts: employee communication and training (67%), technology-driven continuous auditing and monitoring techniques (65%), and fraud and misconduct risk assessment (60%).

 

Source: KPMG, kpmg.com/aci/fraud_risk.asp.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out